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Nebosh Diploma Unit A1
Nebosh Diploma Unit A1
DirectCostsofaccidentsandincidents
Thesecostsarereadilymeasurable
Damagetopremises,plantandequipment
Sickpay
Overtimetocoverinjuredperson
Fines
IndirectCostsofaccidentsandincidents
Thesecostsaremoredifficulttoquantify
Lossofanemployee'sskillsandworkoutput
Downtimeduringinvestigationsandpayofpeopleinvestigating
Trainingcostsforreplacementoperators
LostOrders
IncreasedInsurancePremiums
Defendingcriminalandcivilprosections
Fines
CompensationClaims
Workplaceeffects:poorproductivityduetolowmorale
Effectsonsales:increasinglylargercompanieswillnotplaceorderswithsupplierswho
haveapoorhealth&safetyrecordorcannotdemonstrateeffectivemanagementofrisks.
Ofcoursesomecostscanbecoveredbyinsurance(employer'sliability,publicliability,vehicles)but
manyofthecostsassociatedwithaccidentsandincidentscannotbecovered,andeventhose
whicharewillbesubjecttoanexcessinmanycases.
TheHSEreportedfindingsofstudies(HSG96CostsofAccidentsAtWork)whichshowedthe
indirectcostsofaccidentsarebetween8and36timesgreaterthanthedirectcosts.
Goodhealthandsafetymanagementnotonlycontrolscostsbutprovidesincreasedopportunitiesfor
profitthroughbettermoraleintheworkforce(improvementsinproductivity)andtheabilityto
tenderfororderswhichwouldnototherwisebeconsideredbylarge,publicfacingorganisations.